If you are new to commercial leasing, it will be prudent for you to look beyond your actually monthly rent and utility costs when determining whether an office space is ideal for your business. What you want to avoid is to be taken advantage of by the landlord after sensing your naivety. Familiarizing yourself with the intricacies of a commercial lease will be a good start. The following are the top 6 important questions to ask in order to negotiate a fair deal:
What Type of Commercial Lease is Given?
There are various types of commercial leases, including gross lease (also referred to as a full-service lease, net lease (single net, double net, triple net and absolute triple net), and modified lease. It’s important for you to know the type of lease being offered and your obligations under it.
Are the Terms of the Lease Negotiable?
One way of knowing whether you’ll have an easy time with your soon-to-be landlord is finding out how flexible he is when it comes to the lease terms. Is he willing to negotiate the terms so that they can work in both your favor? If not, you’ll be stuck with an unreasonable landlord who will not relent in case some of the terms are not favorable to you.
Is the Space Modifiable?
It’s not usually possible to find a space that is as exactly as you would like it. Before signing a commercial lease, it is important for you to check with the landlord whether it is okay for you to modify the space in order for it to accommodate your business needs.
What other Tenants are In the Premises?
Before you sign that lease, it would be smart to know whether there are major competitors in the building. It’s also important to find out whether there are businesses whose presence in the building that could harm your brand. It’s best to choose those buildings that have businesses that add value and prestige to yours.
What Amenities are Available?
You will really regret signing a lease and then realize after that the space you are moving into doesn’t have some crucial office amenities. If you need an office kitchen, be sure that it’s available. If your staff will require access to the internet, check beforehand that relevant connections are available. You should also ensure that all the amenities that you require are not only available, but that they’re also easily accessible.
Is the Commercial Lease Assignable?
In case your business fails to succeed or the need for a more attractive space arises, you may find it necessary for you to assign the space to another party. If you overlook this when signing a lease, it may be impossible for you to assign the space to another party in case you’re forced to close your business or relocate to another location before the lease expires. It’s therefore important for you to ask the landlord if the commercial lease is assignable.
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